HMRC has published its latest Tax Update: Simplification, Modernisation and Fairness, outlining a range of proposed changes to the tax system.
Self Assessment payments through PAYE
HMRC is consulting on plans to collect more Income Tax Self Assessment liabilities through PAYE from April 2029, helping taxpayers spread payments throughout the year rather than facing larger bills later.
VAT and PAYE by Direct Debit
A new consultation is seeking views on requiring businesses to pay VAT and PAYE liabilities by Direct Debit, with the aim of reducing late payments and tax debt.
E-invoicing roadmap confirmed
The government has confirmed that the Peppol network will underpin the UK's future e-invoicing system. A detailed implementation roadmap is expected at Budget 2026, ahead of a planned mandate from April 2029.
Review of employee expense rates
HMRC will review its Benchmark Scale Rates and Overseas Scale Rates for employee travel expenses, with a focus on simplification and ensuring rates reflect current costs.
Greater focus on compliance
Consultations have also been launched on extending debt recovery powers and introducing a criminal offence for making reckless false statements in direct tax matters.
Ami Copeland, CEO of ICB, said:
"These announcements provide a useful insight into the future direction of the tax system. While many of the proposals are still at an early stage, they point towards greater digitalisation, more timely tax collection and increased automation. Bookkeepers will play a vital role in helping businesses navigate these changes, and ICB will continue to represent the profession as the proposals develop."
- HMRC has published consultations and calls for evidence on:
- More timely payments for Self Assessment
- Mandatory Direct Debit payments for VAT and PAYE
- E-invoicing implementation
- PAYE Settlement Agreements
- Voluntary National Insurance Contributions
- Employee expense scale rates